Charter Schools: Does the state provide start-up or planning grants to new charter schools?

Charter Schools: Does the state provide start-up or planning grants to new charter schools?

January 2018


This resource contains information about the 44 states, plus the District of Columbia, with charter school laws. It does not contain any information for the six states that have not enacted charter school laws.

Please contact Micah Ann Wixom or mwixom@ecs.org with questions or comments about the database.
 

Does the state provide start-up or planning grants to new charter schools?
Alabama No
Alaska Yes. Charter schools established on or after July 1, 2014, may receive a one-time grant from the department of education in the amount of $500 for each student enrolled in the school on October 1 of the first year in which the school applies for the grant. The charter school must use the grant to provide educational services including curriculum development, program development and special education services. If the amount appropriated in a fiscal year for the charter school grant program is insufficient to meet the amounts authorized, the grant is reduced and the charter school may apply in a subsequent fiscal year for the balance of the grant amount. New charter schools with at least 75 students are eligible for additional funding during their first 3 years of operation.

Citations: Alaska Stat. Ann. § 14.03.264; Alaska Stat. Ann. § 14.17.450
Arizona Yes. Subject to legislative appropriations, the Charter School Stimulus Fund provides financial support to charter school applicants and charter schools for start-up costs and costs associated with renovating or remodeling existing buildings.
 

Citations: Ariz. Rev. Stat. Ann. § 15-188
Arkansas No
California Yes. The Charter School Revolving Loan Fund allows charter schools to receive low-interest loans for as much as $250,000, allowing up to 5 years for repayment.
Colorado Yes. Charter schools can apply for funding under the Building Excellent Schools Today (BEST) program, a competitive grant program. BEST funds can be used for the construction of new schools.

Citations: Colo. Rev. Stat. Ann. § 22-43.7
Connecticut Yes. Subject to legislative appropriations, the state may provide a grant in an amount not to exceed $75,000 to any newly approved state charter school that assists the state in meeting the goals of the 2008 stipulation and order for Milo Sheff, et al. v. William A. O'Neill, et al., as determined by the commissioner of education, for start-up costs associated with the new charter school program.

In addition, the state department of education may award, within available appropriations, a grant of up to $500,000 to any town in which a newly established local charter school is located, to be paid to the fiscal authority for the local charter school to assist with the start-up costs provided the local or regional board of education for the local charter school and the representatives of the exclusive bargaining unit for certified employees mutually agree on staffing flexibility in the school, and the agreement is approved by the state board. In order to be eligible for a grant, a grant applicant must satisfy one of the following conditions: 1) Have high quality, feasible strategies or a record of success in serving students from among the following populations: a) students with histories of low academic performance, b) students who receive free or reduced price school lunches, c) students with histories of behavioral and social difficulties, d) students eligible for special education services, e) students who are English language learners, or f) students of a single gender; or 2) Have a high quality, feasible plan for turning around existing schools that have demonstrated consistently substandard student performance, or a record of success in turning around such schools.

Citations: Conn. Gen. Stat. Ann. § 10-66ee; Conn. Gen. Stat. Ann. § 10-66nn
Delaware Yes. Subject to legislative appropriations, charter schools may apply for competitive grants from the Charter School Performance Fund. The department of education establishes threshold eligibility requirements for applicants, which include but are not limited to a proven track record of success, as measured by a performance framework established by the charter school's authorizer or comparable measures as defined by the department. The department is required to prioritize applications from applicants that have developed high-quality plans for start-up or expansion or serve high-need students.

Citations: Del. Code Ann. tit 14 § 509
District of Columbia Yes. The Credit Enhancement Revolving program helps fund the Charter School Incubator Initiative to secure and finance facilities for new charter schools. The Replication and Growth Grant program supports the replication and expansion of high quality charter schools by funding the planning and development of a new facility.

Citations: http://www.buildinghope.org/ppp/; https://osse.dc.gov/service/replication-and-growth-grant-ffy-2013
Florida No
Georgia No
Hawaii No. However, the department will provide resources to a conversion charter school during the first year of its operation based upon the department’s allocation to the school for the year prior to the conversion.

Citations: Haw. Rev. Stat. § 302D-28
Idaho No. However, the state may provide an advance payment of 25% of a charter school's estimated annual apportionment for its first year of operation and each year thereafter provided the school is serving more grades or at least 10% more classes than the previous year.

Citations: Idaho Code Ann. § 33-5208(6)
Illinois Yes. The state board of education makes transition impact aid available to charter schools. The amount of the aid equals 90% of the per capita funding during the first year of its initial charter term, 65% of the per capita funding during the second year of its initial term, and 35% of the per capita funding during the third year of its initial term. The state board also makes grants and interest-free loans available to charter schools in their initial term so they can acquire educational materials and acquire or remodel a facility. The grants may not exceed $250 per student and the loans cannot exceed $750 per student enrolled in the charter school.

Citations: 105 Ill. Comp. Stat. Ann. § 5/27A-11.5
Indiana Yes. Subject to funding availability, charter schools can apply to the Charter School Facilities Assistance Fund for grants or loans to pay the first semester costs for new charter schools.

Citations: Ind. Code Ann. § 20-24-12-1 to Ind. Code § 20-24-12-12
Iowa No. However, the state board of education is required to apply for federal grants to provide financial assistance for the planning, program design, and initial implementation of charter schools.

Citations: Iowa Code Ann. § 256F.3
Kansas No
Kentucky No

Citations: Kentucky 2016-2018 Budget Appendix A
Louisiana Yes. Subject to legislative appropriations, the Louisiana Charter School Start-Up Loan Fund provides zero-interest loans up to $100,000 for eligible new and existing charter schools for up to three years. Loans can be used to purchase tangible items such as equipment, technology, instructional materials, facility acquisition, upgrades, and repairs.

Citations: La. Rev. Stat. Ann. § 17:4001
Maine No
Maryland No
Massachusetts No
Michigan No
Minnesota No
Mississippi No
Missouri Yes. The state department of education retains 1.5% of a charter school’s state and local funding (not to exceed $125,000) for administrative fees and gives the retained amount to the charter school’s authorizer. Funds can be used to assist with start-up costs, among other things.

Citations: Mo. Stat. Ann. § 160.400; http://www.mnea.org/Missouri/CharterSchools.aspx
Nevada Yes. Charter schools whose applications have been approved can apply to the State Public Charter Authority for a loan from the Account for Charter Schools. Loans can be used to prepare a charter school for its first year of operation or to improve a charter school that has been in operation.

Citations: Nev. Rev. Stat. Ann. 388A.438
New Hampshire No
New Jersey No
New Mexico Yes. Subject to legislative appropriations, the Charter School Stimulus Fund assists conversion and start-up charter schools with start-up costs.

Citations: N.M. Stat. Ann. § 22-8B-14
New York Yes. Through the Charter School Stimulus Fund, charter schools can receive grants for start-up costs.

Citations: http://www.newyorkcharters.org/new-york-state-stimulus-fund-grants/
North Carolina No
Ohio Yes. Subject to legislative appropriations, the department of education may make a loan from the Community School Revolving Loan Fund to a charter school to cover start-up costs.

Citations: Ohio Rev. Code Ann. § 3314.30
Oklahoma Yes. The Charter Schools Incentive Fund provides funding to charter school for start-up costs. The state department of education allocates per-pupil funds to match funds allocated through the federal State Charter School Facilities Incentive Grants Program.

Citations: Okla. Stat. Ann. tit. 70, § 3-144
Oregon No
Pennsylvania Yes. The state secretary of education distributes appropriated planning and start-up funding grants to qualifying start-up charter schools. The amount awarded varies based on the size and characteristics of the charter school.

Citations: 24 Pa. Cons. Stat. Ann. § 17-1731-A
Rhode Island Yes. When federal charter school start-up funding grants are unavailable, the state provides interest-free loans up to $150,000 per charter school.

Citations: R.I. Gen. Laws Ann. § 16-77.1-4
South Carolina No
Tennessee No
Texas No
Utah Yes. The State Charter School Board uses money appropriated for charter school costs to provide planning and implementation grants to charter schools. Charter schools also have access to loans through the Charter School Revolving Account for planning, start-up or expansion expenses.

Citations: Utah Code Ann. § 53A-1a-513.5(8)(a)(i); Utah Code Ann. § 53A–1a–522
Virginia Yes. The Public Charter School Fund provides funds used solely for the purpose of establishing or supporting charter schools. Distribution criteria is established by the Board of Education.

Citations: Va. Code Ann. § 22.1-212.5:1
Washington No
Wisconsin No
Wyoming No


© 2020 by the Education Commission of the States (ECS). All rights reserved. ECS is the only nationwide, nonpartisan interstate compact devoted to education. 700 Broadway #810, Denver, CO 80203-3442

To request permission to excerpt part of this publication, either in print or electronically, please contact the Education Commission of the States’ Communications Department at 303.299.3636 or mzatynski@ecs.org.

Your Education Policy Team  www.ecs.org